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Self-Preferencing at Amazon: Evidence from Search Rankings

Author

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  • Chiara Farronato
  • Andrey Fradkin
  • Alexander MacKay

Abstract

We study whether Amazon engages in self-preferencing on its marketplace by favoring its own brands (e.g., Amazon Basics) in search. To address this question, we collect new micro-level consumer search data using a custom browser extension installed by a panel of study participants. Using this methodology, we observe search positions, search behavior, and product characteristics. We find that Amazon-branded products are indeed ranked higher than observably similar products in consumer search results. The prominence given to Amazon brands is 30 percent to 60 percent of the prominence granted to sponsored products.

Suggested Citation

  • Chiara Farronato & Andrey Fradkin & Alexander MacKay, 2023. "Self-Preferencing at Amazon: Evidence from Search Rankings," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 239-243, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:239-43
    DOI: 10.1257/pandp.20231068
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    Cited by:

    1. Federico Etro, 2023. "e-Commerce Platforms and Self-preferencing," Working Papers - Economics wp2023_07.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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